Research Development and Innovation (RDI) Scheme:
The Union Cabinet, chaired by Prime Minister of India has approved the Research Development and Innovation (RDI) Scheme with a corpus of Rs. One lakh Crore.
- It aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI.
- The scheme has been designed to overcome the constraints and challenges in funding of the private sector.
- It seeks to provide growth & risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness.
- Key objectives of the Scheme:
- Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance;
- Finance transformative projects at higher levels of Technology Readiness Levels (TRL)
- Support acquisition of technologies which are critical or of high strategic importance;
- The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme.
- The Executive Council (EC) of ANRF will approve the Scheme’s guidelines, and recommend 2nd level fund managers and scope and type of projects in sunrise sectors.
- An Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary, will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers besides reviewing the performance of the Scheme.
- The Department of Science and Technology (DST) will serve as the nodal department for implementation of the RDI
- The RDI Scheme will have a two-tiered funding mechanism.
- At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds.
- From the SPF funds shall be allocated to a variety of 2nd level fund managers. This will be mainly in the form of long-term concessional loans.
- The funding to R&D projects by the 2nd level fund managers would normally be in the form of long-term loan at low or nil interest rates.
- Financing in the form of equity may also be done, especially in case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered.
